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IT Contractor Insurance Professional Indemnity insurance, Public / Employers liability - Hiscox.

What does a contractor accountant do?

Published on Dec 14, 2009 |

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Most IT contractors work via their own limited companies, and the majority hire specialist accountants to take care of their tax and statutory requirements as a company owner.

You will find that most contractor specialist accountants provide a similar range of services, although their fees, and level/type of service will vary.

Typical contractor accountant duties

1) Payroll - they should calculate any PAYE and National Insurance Contributions (NICs) payable on your income, and produce monthly payslips. This will include preparing your annual P60 form, company P35, and P11D (expenses), as well as any other HMRC forms.

2) VAT - they will calculate your quarterly VAT liabilities, and deal with communications with HMRC.

3) Prepare your annual company accounts.

4) Complete your company annual return (Form AR01) on your behalf.

5) Calculate your corporation tax liabilities.

6) Self Assessment - most contractor accountants will prepare your tax return for you.

7) Deal with administrative requirements of HMRC and Companies House

8) Familiarity and advice on relevant issues, particularly IR35 and the Managed Service Company legislation.

You can read more in our guide to typical accountant duties.

Further resources

You will find that the leading specialist contractor accountants will offer an all-inclusive service for a fixed monthly fee.

Before signing up, make sure you read our guide to choosing a contractor accountant